press release

Texaco Press Release - Texaco Announces Power Agreement for Largest Cogeneration Project in Philippines

Partnership To Generate 304 Megawatts From New Plant

FOR RELEASE: TUESDAY, SEPTEMBER 23, 1997

WHITE PLAINS, N.Y., Sept. 23 - Texaco announced today that its affiliate San Pascual Cogeneration Company International, B.V. has signed a power purchase agreement with the Philippine electric utility company, the National Power Corporation. San Pascual Cogeneration is 50-50 owned by subsidiaries of Texaco and Edison Mission Energy.

Under the agreement, San Pascual Cogeneration will sell electricity to the National Power Corporation from a new 304-megawatt cogeneration plant to be built in Batangas on the main island of Luzon, Philippines. The plant is projected to start-up in 2001, and will supply steam to an adjacent Caltex refinery and an industrial complex owned by United Coconut Chemicals, Inc. The facility will cost an estimated $400 million, and will be the largest cogeneration project in the Philippines. It is designed to operate on fuel oil or natural gas.

Texaco Inc. Senior Vice President and President - Global Businesses Glenn F. Tilton said, "This project builds on Texaco's strong position in the global energy business. By converging our strengths in developing and marketing all forms of energy, Texaco is helping to generate reliable, low-cost power in countries throughout the world."

Texaco Global Gas and Power (a unit of Texaco Global Businesses) develops independent power plants worldwide and, with its partners and affiliates, operates private power generation facilities producing more than 2,200 megawatts of electricity, with another 1,600 megawatts under development. In addition, Texaco has licensed its gasification power technology to refineries and utilities which will generate more than 2,300 megawatts.

Caltex is a 50-50 joint venture of Texaco and Chevron.

Updated: September 1997